SINGAPORE, May 21 (Reuters) –
- Japanese rubber futures dipped on Tuesday, tracking lower oil prices, although losses were limited by a weaker yen and higher physical prices in top producer Thailand.
- The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: was down 1.5 yen, or 0.46%, at 327.4 yen ($2.09) per kg as of 0200 GMT.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 was up 35 yuan, or 0.24%, at 14,810 yuan ($2,045.35) per metric ton.
- Oil prices fell in early Asian trade on Tuesday, with investors anticipating higher-for-longer U.S. inflation and interest rates will depress consumer and industrial demand. O/R
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- Japan’s benchmark Nikkei average .N225 opened 0.42% higher. .T
- The dollar was firm on Tuesday while the yen JPY= struggled on the weaker side of the 156 level, though trade was mostly rangebound as investors generally stuck to their views of the expected timing and extent of Federal Reserve rate cuts this year. FRX/
- Thailand’s benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK hit 88.06 baht ($2.43) per kg on Monday, 1.29% higher than Friday.
- Japanese Finance Minister Shunichi Suzuki said he was concerned about the negative implications of the current weakness in the yen and its effect on incentives to increase wages.
- Fed Vice Chair Philip Jefferson said on Monday it was too early to tell if inflation slowdown is “long lasting,” while Vice Chair Michael Barr said restrictive policy needs more time. MKTS/GLOB
- The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery STFc1 last traded at 170.9 U.S. cents per kg, up 0.2%.
($1 = 156.4300 yen)
($1 = 7.2408 yuan)
($1 = 36.2300 baht)
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